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Carbon leakage – preventing firms from avoiding emissions rules

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Carbon leakage - preventing firms from avoiding emissions rules
Photo by Chris LeBoutillier on Unsplash

Parliament wants an ambitious carbon levy on imported goods to stop companies from avoiding emissions rules by moving outside the EU, a practice known as carbon leakage.

As European industry struggles to recover from the Covid-19 crisis and the impact of the war in Ukraine, the EU is trying to honour its climate commitments, whilst keeping jobs and production chains at home.

About 27% of global CO2 emissions from fuel combustion come from internationally traded goods and emissions from EU imports have risen, undermining its climate efforts.

What is carbon leakage?

Carbon leakage is the shifting of greenhouse gas emitting industries outside the EU to avoid tighter standards.

How can the EU prevent carbon leakage?

EU efforts to reduce its carbon footprint under the European Green Deal and become sustainably resilient and climate neutral by 2050, could be undermined by less climate-ambitious countries. To mitigate this, the European Commission proposed a Carbon Border Adjustment Mechanism (CBAM) in July 2021 , which would apply a carbon levy on imports of certain goods from outside the EU.

This mechanism is also part of a series of laws being adjusted under the Fit for 55 in 2030 package to deliver on the European Climate Law, through a decrease of greenhouse gas emissions of at least 55% by 2030 compared to 1990 levels.  

Find out more on the EU policy to reduce carbon emissions

How will a European carbon levy work?

If products come from countries with less ambitious rules than the EU, the levy is applied, ensuring imports are not cheaper than the equivalent EU product.

Given the risk of more polluting sectors relocating production to countries with looser greenhouse gas emission constraints, carbon pricing is seen as an essential complement to the existing EU carbon allowances system, the EU’s Emissions Trading System (ETS).

Existing carbon pricing measures in the EU: the Emissions Trading System

Under the current Emissions Trading System (ETS), which provides financial incentives to cut emissions, power plants and industries need to hold a permit for each tonne of CO2 they produce. The price of those permits is driven by demand and supply. Due to the last economic crisis, demand for permits had dropped and so had their price, discouraging companies from investing in green technologies. In order to solve this issue, the EU is reforming the trading system – as foreseen under the Fit for 55 package.

Carbon Border Adjustment Mechanism rules

After reaching a provisional agreement with EU countries in December 2023, Parliament adopted the rules for the Carbon Border Adjustment Mechanism in April 2023. It will cover goods from energy-intensive industries such as iron, steel, cement, aluminium, fertilisers and hydrogen. Initially it should apply to direct emissions – greenhouse gases emitted when the goods are produced until they are imported into the EU. But in the future it will also apply to indirect emissions – arising from the generation of electricity used to produce the goods covered by the legislation.

Who will pay the levy?

Importers will have to pay any difference between the carbon price paid in the country of production and the price of the EU’s Emissions Trading System for carbon allowances. They will have to report on a quarterly basis the direct and indirect emissions from goods imported during the previous quarter as well as any carbon price paid abroad.

When will the new carbon levy apply?

The length of the transition period and the full phase in of the Carbon Border Adjustment Mechanism will be linked to the phasing out of free allowances under the Emissions Trading System, so will be gradually introduced between 2026 and 2034.

What will the money collected via the EU carbon levy be used for?

MEPs supported the Commission proposal to use the revenues generated as new own resources for the EU’s budget.

In addition, money should be channelled to less developed countries to help with the decarbonisation of their manufacturing industries.

Power struggle imperils Sudan’s future, ‘lights fuse that could detonate across borders’

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Power struggle imperils Sudan’s future, ‘lights fuse that could detonate across borders’

António Guterres was addressing an emergency session of the UN Security Council in New York, and again demanded an end to the fighting between troops loyal to Sudanese Armed Forces (SAF) leader Fatttah al-Burhan, and his deputy on the so-called Transitional Sovereign Council, Rapid Support Forces (RSF) leader, Mohamed Hamdan Daglo “Hemedti”.

“It is incumbent on Sudanese leaders to put the interests of their people front and centre”, said the UN chief, who began his speech by paying tribute to all the Sudanese men, women and children, who have lost their lives or been injured since the faction fighting began.

No battlefield solution

Mr. Guterres said a prolonged full-scale war was “unbearable to contemplate” warning that seven countries border Sudan, all of which had seen conflict or serious civil unrest in the past decade.

Poverty and hunger are already rampant across the whole region, he added.

“This conflict will not, and must not, be resolved on the battlefield, with the bodies of Sudan’s children, women and men.”

Following the popular overthrow of long-term dictator Omar al-Bashir four years ago, the generals carried out a joint military coup in 2021, ending the brief and fragile civilian power-sharing agreement that it was hoped would take Sudan into a new era of peace and civilian rule.

As negotiations advanced following positive steps towards elections and a democratic future, the two military factions failed to agree on how to integrate the SAF and RSF forces, sparking this months in-fighting.

Mr. Guterres said the Sudanese people, “have made their wishes very clear. They want peace and the restoration of civilian rule through the transition to democracy”, he told ambassadors in New York.

He urged all with influence and interests in restoring peace, to press the generals to return to the negotiating table immediately..

Committed to stay in Sudan

Turning to the UN operations, he repeated that despite relocating staff to protect personnel and their families, the Organization is committed to “staying and delivery support to the Sudanese people.”

He said Special Representative Volker Perthes would be staying in the country, along with other senior leaders: “We are establishing a hub in Port Sudan to enable us to continue to work with our partners in support of peace, and to alleviate human suffering”.

“Above all, we stand with the Sudanese people”, Mr. Guterres concluded.

‘Humanitarian catastrophe’ leaves civilians bearing the brunt

Addressing the Council via videolink from Sudan, Mr. Perthes said a United States-brokered 72 hour ceasefire that began on Monday, had held “in some parts” but the rival militias had continued accusing each other of violating the truce, while in Khartoum fighting had largely continued “and in some cases, intensified.”

“Residential areas near SAF and RSF installations have come under persistent attack”, he said, with many civilian areas damaged, including schools, shops, utilities, mosques, hospitals and other health facilities – some now “fully destroyed.”

Home invasions, looting of shops and cars at checkpoints, has been “rampant”, including homes and cars of local citizens, UN staff, humanitarian workers and diplomats.

Criminality on the rise

“We have also received disturbing reports of attempted sexual assaults. With supply lines running out and destroyed in airstrikes, fear of increased criminality is mounting”, he said, with reports of prisoners being released onto the streets.

He detailed the volatile situation in Darfur, and mixed responses to attempted ceasefires, with thousands on the move to escape fighting, amid spiralling prices and reports of armed robbery.

The fighting in Sudan has created a humanitarian catastrophe, with civilians bearing the brunt”, he told the Council.

At least 450 have been killed, and over 3,700 injured Mr. Perthes said, almost certainly conservative estimates which are climbing upwards.

In a glimmer of hope, civil society and grassroots networks have mobilized to fill a vacuum left by the forced humanitarian retreat, he said.

He said that UN brokered ceasefire efforts of recent days had not been entirely fruitless, and in the few hours of time negotiated during brief humanitarian pauses, “some brief respite” had been gained, and UN staff were able to relocate on the lengthy journey to Port Sudan.

He warned that reports of some tribes and armed movements mobilizing in Darfur, taking sides in the power struggle, were “dangerous and could draw in Sudan’s neighbouring countries. I renew my call on all communities to maintain their neutrality and refrain from taking sides.”

General ‘miscalculation’

Mr. Perthes said the two generals responsible for the violence were continuing to trade accusations and issuing competing claims over territory won, and “there is no unequivocal sign that either is ready to seriously negotiate, suggesting that both think that security a military victory over the other, is possible.

This is a miscalculation. As fighting continues, law and order will further break down”, said Mr. Perthes, who also heads UN mission UNITAMS, “and command and control dissipate. Sudan could become increasingly fragmented, which would have a devastating impact on the region.”

He said the UN was continuing to ensure that national staff in Sudan, “can relocate as needed to safe areas.”

A residential building in Khartoum is damaged after being hit by a missile.

Three key priorities

Like the Secretary-General, he stressed that “our relocation and evacuation do not mean that the UN is abandoning Sudan”, and there were now three immediate priorities for the UN and partners.

First, a sustained ceasefire with a monitoring mechanism in place. Secondly, a return to political negotiations, and finally, “the alleviation of human suffering.”

“The courage and resilience of our Sudanese friends, national staff and partners, continue to motivate us”, concluded the Special Representative. “The entire UN family will work tirelessly towards ending the violence in Sudan and restoring hope for a better future.”

Aid teams exploring ways of replenishing stockpiles

Briefing the Council on the humanitarian effort, the UN Deputy Emergency Relief Coordinator, Joyce Msuya, said events since 15 April had been “a nightmare for ordinary citizens and aid workers alike.”

Needs were already at a record high, with 15.8 million relying on some form of humanitarian aid, and 3.7 million already internally displaced. She said an “entirely new wave of humanitarian challenges” was now likely.

She praised the people of Sudan and all humanitarians “for their heroic efforts and for putting their lives at risk to help others.”

“We have lost five of our own”, she said, with aid workers attacked in the homes, beaten and held at gunpoint.

The situation is extremely dangerous and alarming”, added the deputy relief chief, but the UN’s commitment to the people, would “remain absolute”, she assured.

Thousands of refugees are crossing the border  into Chad fleeing violence in Sudan.

© UNHCR/Aristophane Ngargoune

Thousands of refugees are crossing the border into Chad fleeing violence in Sudan.

Operations continue ‘where possible’

Where possible, humanitarian operations continue, thanks to the dedication of aid workers, including our local partners. Together, we continue to deliver whenever and wherever feasible, particularly in the areas of health and nutrition”.

She said the UN was now exploring ways to replenish its depleted stockpiles so that aid could be delivered in Port Sudan and elsewhere, “as soon as it is safe to do so.”

A hub in neighbouring Kenya, is being activated, to support the rapid response mission that will be needed, she added.

“What the people of Sudan need, what we need to reach them, is an immediate ceasefire and a lasting solution to the crisis. We are counting on your relentless efforts to this end”, she told ambassadors.

 

 

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UN salutes ‘inspiring’ life of civil rights champion Harry Belafonte

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UN salutes ‘inspiring’ life of civil rights champion Harry Belafonte

“At this moment of sorrow, let us be inspired by his example and strive to defend the dignity and rights of every human being, everywhere,” said UN Spokesperson Stéphane Dujarric, in a statement.

Human rights hero

“Beyond touching millions with his inimitable charm and charisma in music, film, and theatre, Mr. Belafonte devoted his life fighting for human rights and against injustice in all its forms,” he said.

“He was a fearless campaigner for civil rights and a powerful voice in the struggle against apartheid, the fight against AIDS, and the quest to eradicate poverty.”

Born in 1927 in Harlem, New York, Mr. Belafonte was appointed Goodwill Ambassador for the UN Children’s Fund (UNICEF) in 1987. Over the decades, he set new standards for public advocacy on behalf of the world’s children, Mr. Dujarric added.

With unrelenting dedication and boundless generosity, he engaged presidents, parliamentarians, and civil society to advocate for children.

Champion for children

UNICEF Executive Director, Catherine Russell, said that during Mr. Belafonte’s 36 years as Goodwill Ambassador, his dedication and generosity of spirit helped set a high standard for the role – meeting with world leaders to rally support for the agency and the issues that impact children’s lives.

“We mourn the loss of Harry Belafonte, one of the world’s greatest actors, singers, producers, and champions of human rights – especially children,” she said. “His legacy includes advocating for primary healthcare, treatment for HIV/AIDS, and free access to education for all.”

An eloquent campaigner for the world’s children, he understood the power of focusing the world’s attention on its most needy, including, among other things, giving the iconic UNICEF School-in-a-Box its name, and organizing the Grammy winning and quadruple platinum single, We are the World, to raise money for African famine relief, Ms. Russell said.

Harry Belafonte addresses the audience gathered for the UN Day Concert 2009 in the General Assembly.

“We extend our deepest sympathies to the Belafonte family, and join his many fans, friends and admirers from across the globe in celebrating his life, his work, and his steadfast commitment to children,” she added.

UNICEF Goodwill Ambassador Harry Belafonte holds a toddler, standing with other children in the Makina section of the Kibera shanty town in Nairobi, Kenya.

© UNICEF/Mariella Furrer

UNICEF Goodwill Ambassador Harry Belafonte holds a toddler, standing with other children in the Makina section of the Kibera shanty town in Nairobi, Kenya.

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Singapore: OHCHR calls on authorities to halt imminent trafficking execution

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Singapore: OHCHR calls on authorities to halt imminent trafficking execution

OHCHR’s Ravina Shamdasani was briefing journalists in Geneva, and said that reports had emerged from Singapore that it was “poised to conduct a further execution” by hanging, of Tagaraju Suppia – which would be the 12th since March last year.

“We have concerns around due process and respect for fair trial guarantees. The UN human rights office calls on the authorities not to proceed with his execution”, she said.

Death penalty and human rights

Ms. Shamdasani condemned the use of the death penalty and said it should only be reserved for the “most serious crimes,” and indicated that executions are not an appropriate sentence for those found guilty of drug trafficking.

The death penalty for drug offences “is incompatible with international norms and standards. Countries that have not yet abolished the death penalty may only impose it for the “most serious crimes”, which is interpreted as crimes of extreme gravity involving intentional killing,” she said.  

Calling on Singapore authorities

She called for greater accountability from the Singapore Government, saying the issue of executions for drug-related offences had been raised many times.

She noted that there was ongoing dialogue, and it was hoped that this time, the Government would heed the calls, and stop the execution.

She said the death penalty was still being used in a small number of countries, “largely because of the myth that it deters crime. Increasing evidence, however, shows it is ineffective as a deterrent.

“We call on the Singapore Government to adopt a formal moratorium on executions for drug-related offences and to ensure the right to a fair trial for all defendants in line with its international obligations.”

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Rights office calls on Russia and Ukraine to observe rules of war, after alleged POW executions

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Rights office calls on Russia and Ukraine to observe rules of war, after alleged POW executions

If confirmed, the actions would breach the rules of war, and could amount to a war crime.

In a briefing on Tuesday in Geneva, OHCHR Spokesperson Ravina Shamdasani pointed to audio that emerged on Sunday on several Telegram channels, which urged combatants not to bother taking POWs, or to summarily execute those captured.

Take no prisoners

She said one recording was “alleged to be of a member of the Ukrainian armed forces ordering the killing of a prisoner of war from the so-called Wagner Group”, the mercenary force run by Yevgeny Prigozhin, which is fighting alongside Russian troops, notably in the months-long battle for Bakmut.

“A subsequent audio statement was issued, apparently from the head of the Wagner Group, indicating that they would no longer take prisoners of war on the battlefield”, she said.

The OHCHR Spokesperson said that while the authenticity of the recordings on the encrypted app had not yet been confirmed, “such statements could provoke or encourage summary executions of prisoners of war or those hors de combat” – meaning troops who have been injured in battle.

War crimes, if verified

She said if it was verified, the order to summarily execute injured combatants, including POWs, “followed by their killing or an attempt to do so, amounts to a war crime, as does the declaration that no quarter will be given.”

“We call on Russian and Ukrainian authorities to comply with their obligations under international law to investigate the statements in these recordings and to identify and prosecute those responsible”, added Ms. Shamdasani.

‘Clear and unambiguous orders’

She also called on military commanders on the ground in Ukraine, and their superiors, to issue “clear and unambiguous orders to protect and treat humanely POWs and persons hors de combat, and to ensure that these orders are strictly complied with.”

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Sudan: UN aid operation continues amid dire humanitarian conditions

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Sudan: UN aid operation continues amid dire humanitarian conditions

Ten days of fighting between rival military forces have had a devastating impact on the country’s population. The UN humanitarian affairs office (OCHA) warned that people are lacking food, water, medicines and fuel, power is limited, and the prices of essential items as well as transport have skyrocketed.

OCHA spokesperson Jens Laerke told reporter in Geneva that the people of Sudan, already “deeply affected” by humanitarian needs, are now “staring into the abyss”. He underscored that humanitarian operations were also impacted, and that there were more reports of looting of humanitarian supplies and warehouses.

Aid delivery ‘whenever and wherever feasible’

Following a temporary relocation of hundreds of UN staff members and their families from the Sudanese capital Khartoum on Monday, a UN leadership team will remain in Sudan to oversee humanitarian operations going forward. Mr. Laerke said a humanitarian hub is being established in Red Sea coastal city of Port Sudan.

“We and our partners continue to deliver whenever and wherever feasible”, insisted Mr. Laerke, before emphasizing the “heroic” efforts of the Sudanese people themselves. He said that civil society networks are responding to the most urgent needs in their communities, “including mobilizing medical assistance, distributing food and water, and assisting civilians”.

Before the fighting erupted, some 15.8 million people – about a third of the Sudanese population – were already in need of aid.

Rising death and injury toll

According to figures from the Sudanese Health Ministry quoted by the World Health Organization (WHO) on Tuesday, 459 people had been killed in the fighting and over 4,000 injured as of 24 April.  

WHO noted that the actual figures “are likely to be higher” as at least a quarter of all health facilities in Khartoum, where most of the fighting is taking place, are not functional.

Attacks on healthcare

The UN’s health agency has verified 14 attacks on health since the violence began, with 8 deaths and 2 injuries. WHO said that the attacks “must stop” as they bar people in need from accessing essential health services.

WHO also flagged rising health concerns due to ongoing outbreaks of dengue and malaria, as well as a looming cholera alert amid damage to water infrastructure.

“As the needs are increasing, violence has made the delivery of aid near impossible”, WHO said. The agency stressed that it has stocks of essential medicines, blood bags, and supplies for surgery and trauma care “waiting for delivery as soon as safe access is ensured”.

On Monday, UN chief António Guterres made clear in the UN Security Council that the UN would stay and deliver, and stand by the Sudanese people, as they continue to strive towards civilian rule and a new, democratic future.

Key lab under threat

Speaking to reporters from Sudan on Tuesday, WHO’s representative in the country, Dr Nima Saeed Abid, also said that the agency is concerned about the occupation of the National Public Health Laboratory by one of the parties involved in the fighting.

“Trained laboratory technicians no longer have access to the laboratory, and with power cuts, it is not possible to properly manage the biological materials that are stored in the laboratory for medical purposes”, WHO said. In addition to “very high” biological hazards, there is also a risk of spoilage of stocks of much-needed blood bags, as the lab is also the site of the central blood bank.

Mounting displacement

The fighting has already displaced thousands of people, and Paul Dillon, the spokesperson for the International Organization for Migration (IOM), said the agency has activated a displacement tracking tool at 16 points of entry in neighbouring countries to monitor incoming flows.

Data generated by the tool is broken down by age, gender and health needs, and provided to all humanitarian actors to inform their response.

IOM warned that monitoring and relief teams are engaged in a race against time as the arrival of rainy season in late May – early June is projected to cut off large swaths of the border area between Sudan and Chad.

Cross-border movements

The UN refugee agency (UNHCR) told reporters on Tuesday that the most significant cross-border movements in the region have been Sudanese fleeing to Chad, and South Sudanese refugees returning to their country. UNHCR has received reports of people starting to arrive in Egypt, but no numbers are available.

UNHCR said that it is “working closely” with partners and governments in the region to assess and respond to the needs of the new arrivals. The agency also thanked neighbouring countries “for continuing to keep their borders open to those fleeing Sudan – whether to seek international protection or to return to their countries of origin”.

Seeking safety in Chad

UNHCR said that since the fighting started, “at least 20,000 refugees” have fled across the border into Chad, and more are expected to arrive. Speaking from Ndjamena, UNHCR Representative in Chad, Laura Lo Castro, told reporters in Geneva that in the worst-case scenario, as many as 100,000 could cross into the country.

The agency said planning is underway to relocate the new arrivals to an existing refugee camp further from the border, “while a new location is being identified to host additional arrivals”. Chad already hosts over 400,000 Sudanese refugees.

South Sudanese return

Speaking from Juba, UNHCR Representative in South Sudan, Marie-Helene Verney said that the agency has managed to interview and register some 4,000 South Sudanese returnees so far, amid a “very difficult” situation at the country’s northern border.

Many new arrivals lack the means to continue their journey, which is why UNHCR is helping facilitate their onward travel, providing clean water and setting up reception centres. The agency said that overall, there are over 800,000 South Sudanese refugees in Sudan, a quarter of whom are in Khartoum and “directly affected by the fighting”.

Impact on host communities

Ms. Verney also said that for UNHCR, the most likely scenario involved some 100,000 refugees returning to South Sudan, and this was the agency’s “contingency planning figure”. In addition, as many as 45,000 Sudanese could take refuge in South Sudan as well.

Ms. Verney stressed UNHCR was “very concerned” about the impact on host communities. Some 75 per cent of the population of South Sudan are already in need of humanitarian aid.

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Burkina Faso: UN rights office calls for probe into latest deadly attack on civilians

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Burkina Faso: UN rights office calls for probe into latest deadly attack on civilians
© WFP/Cheick Omar Bandaogo - People displaced by conflict in Burkina Faso collect humanitarian relief supplies in the east of the country.

Authorities in Burkina Faso must conduct a full and independent investigation into the recent latest deadly attack on civilians, where score of people are killed in a village near the border with Mali, the UN human rights office, OHCHR, said on Tuesday.

The incident occurred on Thursday when armed men in uniform encircled Karma village, located in northern Yatenga province, and randomly shot at people.  At least 150 civilians were killed, and many more wounded, according to reports. 

The attackers – allegedly members of the defence and security forces, accompanied by paramilitary auxiliaries known as the Volunteers for the Defence of the Homeland (VDP) – then proceeded to loot homes, shops and mosques. 

Shots heard that morning 

OHCHR Spokesperson Ravina Shamdasani said sources in the nearby town of Ouahigouya reported hearing gunshots at 7am on Thursday, three hours after they had seen men in military fatigues on vehicles and motorcycles headed towards Karma. 

“The public prosecutor in Ouahigouya announced on 23 April that 60 people were killed and an investigation into the attack was under way,” she said.   “This investigation must be prompt, thorough, independent, and impartial and must result in credible prosecutions, if such gross violations are to end.” 

Burkina Faso has been experiencing unrest in recent years, with attacks reportedly carried out by suspected jihadists. Armed group activity, and military operations, have sparked widespread displacement, uprooting some two million people. 

Respect rights obligations 

The latest bloodshed comes in the wake of an attack on a VDP base on 15 April. Eight soldiers and 32 VDPs were killed, and more than 30 injured, according to the provincial governor.  

OHCHR said credible accounts indicate the attackers accused villagers of sheltering members of Jamaat Nusrat al-Islam wal Muslim (JNIM), an Islamic State group affiliate, and other non-state armed groups. 

“We call on all parties to the conflict in Burkina Faso to respect their obligations under international humanitarian law, including by refraining from targeting civilians and civilian objects. Deliberately targeting civilians or individuals not taking direct part in hostilities constitutes a war crime,” Ms. Shamdasani said. 

 Wave of attacks 

She added that this was one of several other reported attacks on civilians by the armed forces and VDPs in recent months.  

At least 50 civilians were killed on 9 November when suspected members of the 14th regiment attacked four villages near Djibo town, capital of Soum province.  In another incident, at least 28 people were killed in Nouna town, Kossi Province, on 30-31 December.  

“Investigations were announced by the authorities,” Ms. Shamdasani said. “We call on the authorities to publish the findings of these investigations.” 

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Will the Spanish presidency of the Council of the EU be suspended?

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white red and green map

This is the question some activists are asking themselves in Spain The presidency of the Council of the European Union (Consillium) is rotating and changes every six months, with Spain scheduled to take over on 1 July, but there are doubts about this.

A Spanish alliance is calling for Spain to be declared to have serious systemic deficiencies in its rule of law. The request is based on its own complaints and its own report on the Spanish rule of law in 2022.

This Alliance is made up of four associations and a social movement whose activity is related to the denunciation of corruption, especially institutional corruption, and the administrative and judicial defence of the victims of what they call “(institutional) metamafia” or the defence of human rights. The Alliance is called “Denouncers of Judicial Authoritarianism” (Denunciantes del Autoritarismo Judicial).

The promoter and spokesman of the Alliance is Javier Marzal and states that:

"Our set of complaints to the European Commission and the Spanish Supreme Court reflect the Spanish institutional reality and the political and economic danger it poses to the European Union and its member countries".

The first of the complaints cover the first four years of the current Spanish government led by Pedro Sánchez. It was sent on 11 November 2022 to the European Commission and, unusually, the Commission accepted to process it in the Economic Unit F3, registering the complaint in Ares(2022)8174536. The main allegations are the falsification of numerous public documents and the systematic usurpation of Parliament by the government, both to legislate and to increase public spending without control, up to double the maximum spending of the previous government in 2022.

The second of the complaints was sent on 27 January 2023 and it was requested that it also be processed in the Directorate for Fundamental Rights and the Rule of Law, and the request was accepted and the complaints were processed in Unit C1 as Ares(2023)1525948. This double processing is also unprecedented.

The set of complaints was completed with the amplifying complaint of 15 April 2023 and Marzal states that: “it is the peacetime complaint with the most brutal facts in the history of Europe”.

The following day the Alliance submitted its report on the Spanish rule of law, requesting that the European Commission declare that Spain has serious systemic deficiencies in its rule of law and that it promote the suspension of the Spanish presidency of the Consillium until Spain demonstrates that it has a rule of law. The Alliance proposes that the suspension be put to a vote in the Council of the European Union (among the presidents of the governments of the Member States) and in the European Parliament.

This request has also been made by two MEPs at the annual plenary session of the European Parliament in January 2023, namely Hungary’s Eniko Gyori and Portugal’s Eniko Gyori. Eniko Gyori was the Hungarian Ambassador to Spain from 2014 to 2019, so she knows the Spanish situation well.

Complaints and petitions regarding the rule of law and the Consillium Presidency have also been sent to several MEPs, the Swedish Presidency of the Council of the European Union and several European governments.

This is the first time that individuals and European officials have called for a declaration of dysfunction of the rule of law in an EU Member State and the suspension of the Consillium Presidency.

As a precedent to these actions, it should be noted that the European Commission itself warned Spain in October 2022 that it would not grant any more funds for reconstruction after the Coronavirus Crisis to Spain if the Spanish government did not detail the destination of these funds.

The European Commission was unable to inform the European Parliament’s Committee on Budgetary Control (CONT) about the destination of the Next Generation EU funds transferred to Spain. The President of CONT, Monika Hohlmeier, decided to meet with the Spanish government in Spain to clarify this serious matter. A Commission of ten MEPs, led by Germany’s Hohlmeier, were in Madrid between 20 and 22 February.

At the end of the meetings, she said: “It is impossible to trace the funds to the final beneficiary”, because Spain has not fulfilled its commitment to set up the CoFFEE platform that the Spanish government promised Brussels would be up and running by November 2021.

MEP Susana Solís said: “We don’t know where 3 billion that has already been allocated have gone”. Marzal says that “In Spain, the European Union is strongly criticised for having granted 37 billion euros to Spain, with no guarantees as to the destination of the Next Generation EU funds, and also knowing full well the contempt for the legality of the current government”.

The Coronavirus Crisis and the Next Generation EU funds have led the European Union into a difficult political and economic situation that is beginning to eliminate excessive permissiveness with governments. We must remember that the European Statistical Office (Eurostat) published in 2018 that in the European Union corruption took 4.8% of GDP, in this regard Marzal says that

"The figures of corruption in Spain and in the European Union do not allow us to affirm that the rule of law is working properly, as European officials irresponsibly claim. Corruption threatens to economically collapse several countries and the European Union itself, but the situation is an opportunity to solve this serious problem".

The Alliance’s website www.contraautoritarismojudicial.org contains the denunciations and the report in both English and Spanish. The report is also available in French and German.

‘Methane blockers’ on British cows to reduce carbon emissions

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Cows in the UK may be given “methane blockers” in a bid to reduce their greenhouse gas emissions, the Guardian reports.

The proposal comes after a consultation launched in August on how new types of feed could reduce methane emissions from cows, which are the main cause of emissions from livestock farming.

The Guardian writes that “farmers have welcomed the proposal” but “green campaigners have been skeptical, arguing that the move will fail to tackle other major environmental harms.

They were caused by cattle breeding and the dairy industry, and the measure showed that it was focusing on “technical solutions” and not on reducing consumption.

The Daily Telegraph adds that the extra cost of feeding methane to cows will increase the price of milk for the average consumer by around 33p a year.

“But the cost could be borne by taxpayers if ministers decide to subsidize meals, or by supermarkets in the form of a greenhouse gas levy,” the newspaper said.

A feed additive that reduces emissions of the powerful greenhouse gas methane from cattle could be the first of its kind to hit the market in Europe after receiving a positive assessment from the European Food Safety Authority (EFSA), reported Reuters at the end of 2021.

EFSA found that 3-nitrooxypropanol, called Bover, made by Dutch specialty chemicals company DSM ( DSMN.AS ), reduces emissions in dairy cattle and is safe for cows and consumers who drink their milk.

The EU agency provides scientific opinions on safety and efficacy, which the European Commission decides on together with EU governments.

The manufacturer estimates that emissions are reduced by between 20% and 35% without affecting production and describes Bover as the result of a decade of research.

DSM has yet to market the supplement, despite receiving regulatory approval in Brazil and Chile in September. Since then, it has also signed a development agreement with Brazil’s JBS ( JBSS3.SA ), the world’s largest meat processing company.

The additive works by suppressing enzymes that help break down grass and other fibrous plants, producing methane, which cows release by burping. DSM says its product’s impact on three cows was equivalent to taking a family car off the road (immobilizing it).

Agriculture is the largest source of human-caused methane emissions, at 40 percent, according to the United Nations Environment Program, and the lion’s share of these emissions come from cattle farming.

Photo by Kat Smith:

Crypto-asset transfers – new tracing rules in the EU

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Crypto-asset transfers - new tracing rules in the EU
Photo by Traxer on Unsplash

Parliament endorsed the first EU rules to trace crypto-asset transfers, prevent money laundering, as well as common rules on supervision and customer protection.

MEPs approved with 529 votes in favour to 29 against and 14 abstentions, the first piece of EU legislation for tracing transfers of crypto-assets like bitcoins and electronic money tokens. The text –which was provisionally agreed by Parliament and Council negotiators in June 2022- aims to ensure that crypto transfers, as is the case with any other financial operation, can always be traced and suspicious transactions blocked. The so-called “travel rule”, already used in traditional finance, will in future cover transfers of crypto assets. Information on the source of the asset and its beneficiary will have to “travel” with the transaction and be stored on both sides of the transfer.

The law would also cover transactions above €1000 from so-called self-hosted wallets (a crypto-asset wallet address of a private user) when they interact with hosted wallets managed by crypto-assets service providers. The rules do not apply to person-to-person transfers conducted without a provider or among providers acting on their own behalf.

Uniform EU market rules for crypto-assets

Plenary also gave its final green light with 517 votes in favour to 38 against and 18 abstentions, to new common rules on the supervision, consumer protection and environmental safeguards of crypto-assets, including crypto-currencies (MiCA). The draft law agreed informally with the Council in June 2022 includes safeguards against market manipulation and financial crime.

MiCA will cover crypto-assets that are not regulated by existing financial services legislation. Key provisions for those issuing and trading crypto-assets (including asset-reference tokens and e-money tokens) cover transparency, disclosure, authorisation and supervision of transactions. Consumers would be better informed about the risks, costs and charges linked to their operations. In addition, the new legal framework will support market integrity and financial stability by regulating public offers of crypto-assets.

Finally, the agreed text includes measures against market manipulation and to prevent money laundering, terrorist financing and other criminal activities. To counter money-laundering risks the European Securities and Markets Authority (ESMA) should set up a public register for non-compliant crypto assets service providers that operate in the European Union without authorisation.

To reduce the high carbon footprint of crypto-currencies, significant service providers will have to disclose their energy consumption.

Quotes by rapporteurs

Stefan Berger (EPP, DE), lead MEP for the MiCA regulation, said: “This puts the EU at the forefront of the token economy with 10 000 different crypto assets. Consumers will be protected against deception and fraud, and the sector that was damaged by the FTX collapse can regain trust. Consumers will have all the information they need and all underlying risks around crypto-assets will have to be monitored. We secured that the environmental impact disclosure will be taken into account by investors in crypto assets. This regulation brings a competitive advantage for the EU. The European crypto-asset industry has regulatory clarity that does not exist in countries like the US.”

Ernest Urtasun (Greens/EFA, ES)co-rapporteur for the Economic and Monetary Affairs Committee on crypto-asset transfers said: “Currently illicit flows in crypto-assets are moved swiftly across the world, with a high chance of never being detected. The Recast of the TFR will oblige crypto-asset service providers to detect and stop criminal crypto flows and also ensure that all categories of crypto companies are subject to the full set of anti-money laundering obligations. This will close a major loophole in our AML framework and implement in the EU the most ambitious travel rule legislation in the world so far, in full compliance with international standards.”

Co-rapporteur for the Civil Liberties, Justice and Home Affairs Committee Assita Kanko (ECR, BE) said: “Parliament and Council have found a fair compromise that will make it safer for people of good will to hold and trade crypto assets. However, it will make it more difficult for criminals, terrorists and sanctions evaders to misuse crypto assets. Any administrative burden on crypto companies and innovators will be more than offset by the fact that we are unifying the currently fragmented European market that has 27 regulatory regimes.”

Next steps

The texts will now have to be formally endorsed by Council, before publication in the EU Official Journal. They will enter into force 20 days later.

In adopting this legislation, Parliament is responding to citizens’ expectations to set safeguards and standards for the use of blockchain technology as expressed in Proposal 35(8) of the conclusions of the Conference on the Future of Europe.